Iran re-closed the Strait of Hormuz to oil tanker traffic on Thursday. The move follows Israeli strikes in Lebanon that Iran deemed a violation of a U.S.-Iran ceasefire announced earlier this week. This waterway serves as a chokepoint for approximately 20% of the world's oil supply.
Brent crude rose over 4% to approximately $98.70 per barrel. U.S. benchmark crude jumped over 5% to near $99.50 per barrel. These price increases reversed a sharp plunge recorded during the previous session.
Marine tracking data shows that oil tanker traffic has stopped moving through the strait. High-stakes diplomatic talks are scheduled for this weekend in Pakistan to address the disruption.